Samsung Electro-Mechanics Q1 net income drops on weak currency
Samsung Electro-Mechanics Co., an electronic component affiliate of Samsung Group, said Tuesday its net profit fell 24.1 percent in the first quarter from a year earlier due mainly to a weak local currency.
Net income amounted to 141.6 billion won ($98.4 million) for the January-March period, compared with 186.5 billion won a year ago, the company said in a regulatory filing.
The earnings fell behind market expectations. The average estimate of net profit by analysts stood at 172.2 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Samsung Electro-Mechanics said the net income in the first quarter reflected a foreign exchange loss stemming from the weak Korea won against the US dollar.
However, the company's operating income rose 9.2 percent on-year to 200.6 billion won for the quarter, with its revenue increasing 4.8 percent to 2.73 trillion won.
The company attributed the growth in revenue and operating profit to increased sales of components for Samsung Electronics' new flagship smartphones and rising demand for automotive multilayer ceramic capacitors for artificial intelligence and chip packaging solutions for servers.
Samsung Electro-Mechanics anticipated that demand for high-performance products, such as MLCC and vehicle components, will continue to grow in the second quarter. (Yonhap)
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